Summary
- Coinbase is launching perpetual futures on the Base App through Hyperliquid, allowing users to leverage up to 50x.
- These perpetual contracts constitute around 75% of crypto trading volume and are highly sought after by active Base App users.
- This introduction marks a strategic shift from Base's original emphasis on social features to a focus on trading, payments, and AI functionalities.
On Wednesday, Coinbase revealed that it will be adding leveraged cryptocurrency derivatives to its Base App, enabling eligible users to trade perpetual futures with leverage of up to 50x through Hyperliquid.
This integration provides access to over 290 perpetual futures markets, including popular cryptocurrencies like Bitcoin and Ethereum, as well as markets related to stocks and commodities.
Myriad: What will be Bitcoin's next move? Make your prediction here.Chintan Turakhia, Coinbase's Head of Engineering, stated to Decrypt, "Perps are where the volume is—approximately 75% of all crypto trading today consists of perps, not spot trading," emphasizing that these are "the most requested feature from our power users."
Perpetual futures, commonly referred to as perps, are derivatives that allow traders to speculate on price movements of an asset without actually owning it. Unlike conventional futures, they do not have an expiration date. Traders can utilize leverage to manage larger positions with a smaller amount of capital, amplifying both potential profits and losses.
Turakhia further noted, “Our most engaged users have been clear that leverage is a key factor in their continued participation; perps are the most requested feature from our power users. This launch equips them with the advanced trading capabilities they’ve been asking for while maintaining self-custody.”
At the outset, users will be able to trade more than 290 perpetual futures pairs around the clock, covering assets from Bitcoin and Ethereum to tokenized stocks and commodities, with leverage reaching up to 50x depending on the asset. If losses surpass specific thresholds, positions may be liquidated.
This integration facilitates trades within the Base App, with Hyperliquid managing their execution.
“[Hyperliquid] is among the most efficient on-chain perpetual protocols, and since we support multiple chains and ecosystems, this integration allows our users to access its substantial liquidity and speed without leaving their existing wallets,” Turakhia explained.
Coinbase mentioned that the perpetual futures feature is not available in the U.S., UK, Canada, or other regions that impose restrictions on leveraged crypto derivatives.
This addition enhances the trading options available in the Base App and comes a year after Coinbase rebranded its wallet as Base App, promoting it as an “everything app” that integrates crypto trading with social features, messaging, AI tools, and monetization for creators.
However, a year later, the strategy has evolved. In July, Jesse Pollak, the creator of Base, stepped back from his leadership role after recognizing that the app's focus on social features and creator coins did not yield the anticipated adoption. Pollak noted that prediction markets, perpetuals, and stablecoins had emerged as more effective drivers of user engagement, prompting Base to refocus on trading, payments, and AI functionalities.
“In my view, we made the right choice in backing builders, but clearly misjudged the social aspect,” he wrote on X.